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GLOBAL MARKETS-Asian shares rise as vaccine hopes inject relief

Published 2020-11-23, 01:08 a/m
© Reuters.
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* MSCI Asia ex-Japan +0.7%

* European shares set for higher open

* Australia eases lockdowns, U.S. vaccines in sight

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* 2020 asset performance http://tmsnrt.rs/2yaDPgn

* World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Andrew Galbraith

SHANGHAI, Nov 23 (Reuters) - Asian shares rose on Monday, pushing a broad regional index to a record high as investors pinned their hopes for economic revival on coronavirus vaccines, even as the world contends with surging case numbers and delays to fresh U.S. stimulus.

European investors shared the brighter outlook in early trades, with pan-regional Euro Stoxx 50 futures STXEc1 gaining 0.29%, German DAX futures FDXc1 0.26% higher and FTSE futures FFIc1 up 0.21%.

Investors' fresh optimism comes after a top official of the U.S. government's vaccine development effort said Sunday that the first vaccines could be given to U.S. healthcare workers and others recommended by mid-December. the grim backdrop of accelerating COVID-19 infections in the United States, the forecast helped to raise hopes that lockdowns that have paralysed the global economy could be nearing an end.

"With the vaccine on its way and the likelihood that economic damage being done by the virus will lift, we'll still have in place substantial support from central banks and governments. And that is an economic sweet spot that should see a significant economic bounce," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"It's fascinating that investors are willing to focus on that aspect. It does require some pretty heavy squinting, including looking through the rising infection rates that we're seeing right now. But there is a real optimism around it."

Total U.S. COVID-19 cases topped 12 million over the weekend and more than 255,000 people have died.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.71% on Monday, pushing past a previous record high touched on Friday.

Seoul's Kospi .KS11 was 1.83% higher as an optimistic earnings outlook for South Korean chip giants drove gains. markets were closed for a holiday, but Nikkei futures NKc1 added 0.27% to 25,815.

The regional index also got a boost from Australian shares .AXJO which gained 0.34% as the country eased some COVID-19 restrictions. Most of the country has seen no new community infections or deaths in several weeks. blue-chips .CSI300 added 1.54%.

Analysts said the gains belied fragile sentiment as monetary and fiscal help for the U.S. economy remained elusive.

U.S. Treasury Secretary Steven Mnuchin said on Thursday that key pandemic lending programs at the Federal Reserve would expire on Dec. 31, putting the outgoing Trump administration at odds with the central bank and potentially adding stress to the economy. is only beginning and may take some time if the recent partisan disagreements over the composition and magnitude of fiscal spending are any indication," analysts at ANZ said in a note.

U.S. e-mini futures for the S&P 500 EScv1 were 0.27% higher at 3,564 on Monday after U.S. shares slumped on Friday on a combination of dwindling aid for the U.S. economy and rising novel coronavirus infection rates.

The Dow Jones Industrial Average .DJI dropped 0.75%, the S&P 500 .SPX fell 0.68% and the Nasdaq Composite .IXIC ended down 0.42%.

In currency markets, a rise in the safe-haven yen underscored nagging investor concerns. The dollar softened 0.12% to 103.73 JPY= while the euro EUR= gained 0.18% on the day to $1.1874.

The dollar index =USD , which tracks the greenback against a basket of six major rivals, nudged down to 92.250.

Commodity markets were more bullish, with traders optimistic about a recovery in crude demand pushing oil higher.

Global benchmark Brent crude LCOc1 rose 0.58% to $45.22 per barrel and U.S. crude CLc1 bumped 0.28% higher to $42.54 per barrel.

Spot gold XAU= added 0.19% to $1,874.06 per ounce. GOL/

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates in 2020

http://tmsnrt.rs/2egbfVh 2020 asset performance

http://tmsnrt.rs/2yaDPgn

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